Abstract:
Purpose - The aim of this study is to see the impact of leverage on profitability in the
Manufacturing industry of Pakistan. It is observed that leverage play an important role in the
profitability of the company.
Research Methodology - This study is based on secondary data collected through the annual
reports of the companies. Previous literature is reviewed and analyzed to gather information.
Interviews were conducted from the key people of the companies to collect relevant data for the
study.
Findings - The results show that leverage does not have much impact on the profitability.
Research Limitations - Only limited sample was taken for the study. And it is conducted in a
very short span of time.
Practical Implications - The study will facilitate the management food manufacturing
companies to decide the optimum level of leverage and hence will help them increase the
profitability.
